Business & Finance Credit

How to Use Credit Cards to Improve Bad Credit Scores

    • 1). Sign up for a new credit card. Since you have bad credit, you'll probably only be able to get a credit card that is marketed to people with bad credit. This card will have a low credit line and a higher interest rate.

    • 2). Use the credit card to buy small things every month. Don't make more than $100 in charges, and make sure that you have the money to pay off the bill every month. If you overspend, you won't be able to improve your credit score.

    • 3). Pay off the credit card on time, but leave a small balance of $10 on the credit card. Credit agencies like to see that you have a line of credit and that you use it responsibly. Keeping a small balance on the credit card will show them that you know how to use credit.

    • 4). Get a better credit card as your credit score improves. Improving your credit score will make you eligible for better credit cards. These credit cards will have better interest rates and larger lines of credit.

    • 5). Pay off the first credit card completely once you have opened the second credit card account. Keep both accounts open, but only use the card with the better interest rates. Continue to charge a small amount and pay off almost all of the bill every month, and your credit score will improve dramatically.

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